Page 270 - DCAP601_SIMULATION_AND_MODELING

Simulation and Modelling

Notes The challenge clearly has been to analyse the actual cost of production and know what
contributed to the bottom line of the business. Was it the right product mix, was it the
right cost of manufacturing, and was it the right selling price.
Many times, CFO grapples with why the business result was not as planned, despite
revenue targets being met. Understanding each cost component in real time as it happens,
gives senior management a powerful tool to analyse and know the contribution factor.
While most costs might be done on average weighted cost basis (say, for energy), it is
quite possible that a particular size/quantity and category of product line draws more
energy; consequently it is being subsidised, while another product line has lost its market
share because of non-competitive selling price.
A real time costing analysis would assist businesses to know real time contributing factor
for product mix, category, etc., and further also understand which customer is being
profitable in terms of contribution.
Source: http://www.thehindubusinessline.com/todays-paper/tp-opinion/article989070.ece

13.3 Summary

 In models for discrete event dynamic systems (i.e., DEDS models) state changes occur at
particular points in time whose values are not known a priori.
 As a direct consequence, (simulated) time advances in discrete ‘jumps’ that have unequal
length.
 Continuous Simulation refers to a computer model of a physical system that incessantly
tracks system response over time according to a set of equations typically involving
differential equations.

13.4 Keywords

C/D: Continuous/Discrete (C/D)
CTDS: Continuous Time Dynamic Systems
DEDS:Discrete Event Dynamic Systems
DSS: Discrete-system Simulator
VIM: Visual Interactive Modelling
VIS: Visual Interactive Simulation

13.5 Self Assessment

1. One of the main difficulties in the definition of CAD tools for Continuous/Discrete (C/D)
systems is due to the ………………. of concepts manipulated by the discrete and the
continuous components.
2. The interfaces are generated by ………………… elements from the CODIS library.
3. The communication layer is in charge of sending/receiving data between …………….

4. There are a large number of ……………. areas for Discrete Event Simulation.
5. ………………… approaches are particularly well equipped to help users diagnose issues
in complex environments.

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